Farmer solidarity: What the planned animal welfare tax means - financial expert warns of rising costs for consumers.

Farmer solidarity: What the planned animal welfare tax means - financial expert warns of rising costs for consumers.

According to a report by www.bild.de, Germany's farmers are protesting on the streets against the traffic light government's policies, especially against reduced agricultural subsidies. Federal Agriculture Minister Cem Özdemir is therefore proposing a farmers' solidarity on animal products in order to finance the animal welfare-friendly conversion of stables. The introduction of an animal welfare tax is supported by FDP agricultural politicians and the possible effects of such a tax on the market price of meat and animal products are already being discussed.

If the animal welfare tax is introduced, this would lead to an increase in the price of animal products. Plans from Angela Merkel's grand coalition, for example, envisaged charging 40 cents per kilo of meat, two cents per liter of milk and 15 cents on butter and cheese. Experts estimate that this could generate revenue of 3.6 billion euros. This income should flow directly to the companies, but should be used for the animal-friendly conversion of the stables.

A possible consequence would be that the introduction of the animal welfare tax would lead to higher sales prices for meat and animal products. This could lead consumers to reduce their consumption, which could result in losses in the agricultural industry. In addition, the introduction of such a tax could affect the competitiveness of German agricultural products compared to imported products from abroad.

Özdemir's push to introduce farmers' solidarity and the debate about it could have an impact on the market for animal products and the entire financial industry. It remains to be seen how the discussion will develop and whether the traffic light government will actually introduce the animal welfare tax.

Overall, it is important to note that the introduction of a new tax can have an impact on consumers, the agricultural industry and international trade. The exact design of the animal welfare tax and its effects should therefore be carefully analyzed.